Median NRR is Still Over 110%. But it’s Fallen to Multi-Year Lows.

The software universe’s median net retention has been steadily declining in recent quarters, putting pressure on churn and making upsells more difficult. While NRR has fallen each quarter since Q4’22 and is now lower than pre-Covid levels, it still remains above 110% for most public SaaS companies. Even though NRR has dropped, it’s still a strong indicator of growth. For example, Snowflake’s NRR has decreased from 170% to 130%, showing a trend of contraction rather than churn in B2B SaaS. Despite the challenges posed by declining NRR, investing in customer relationships and growth ultimately pays off in the long run. While there may be tough years, the overall trend in SaaS remains positive. Invest in it. The content was originally posted by Jamin Ball from Altimeter.